How to Trade the Central Bank Meetfest

This week will be chockablock with central bank meetings. Here's how to trade them.

Monday will bring the first of nine - count 'em, nine - central bank meetings in the next week, from the European Central Bank to the Bank of Korea. Rebecca Patterson, chief markets strategist for J.P. Morgan Asset Management, Institutional, says Korea, Brazil and Indonesia will be the ones to watch.

"Those are the three that I think are the most likely to see rate hikes in the week ahead, 25 basis points each," she told CNBC's Melissa Lee. All three have strong fundamentals, and Brazil in particular is eager to fight inflation. Investors also need to watch the European Central Bank meeting closely to see if President Jean-Claude Trichet mentions "strong vigilance" on inflation, Patterson says. If he does, he's indicating a likely interest rate hike in July, which would boost the euro.

The British situation is very different, Patterson says.

"They do have rising inflation. Inflation's been above the central bank's mandate," she says.

"But they're reluctant to hike because they are tightening fiscal policy, they do have sluggish growth, and they're afraid that if they tighten monetary and fiscal policy, they could risk a real slowdown in the economy."

Patterson recommends buying the euro against the pound right around current levels at 0.8900, with stop of 0.8750 and a target of 0.9200.

You can watch the whole discussion in the video clip.

Tune In: CNBC's "Money in Motion Currency Trading" airs on Fridays at 5:30pm.

"Money in Motion Currency Trading" repeats on Saturdays at 7pm.